Listings of collateralised loan obligations – securities that are backed by a pool of debt, mainly corporate loans – on the Cayman Islands Stock Exchange (CSX) were only marginally down in the first half of 2020 compared to the previous year, according to Maples Group’s industry newsletter for the global CLO market.
The CLOser newsletter noted that CLO listings started the year strongly and were on track to exceed the previous year’s tally before the COVID-19 outbreak.
Despite a quiet second quarter, a total of 24 CLOs, comprising new issuances, refinancings and resets, were listed on the CSX. This was only marginally less than the 26 CLOs listed during the same period in 2019.
The vast majority (96%) of CLOs were by Cayman Islands issuers with a Delaware co-issuer, Maples Group said.
The group said it listed 63% of all new CLOs on the Cayman Stock Exchange in the first half of this year.
No listings in July were followed by three in August with at least two more scheduled in September, Maples Group said.
Activity in the US CLO market, which dominates globally, fell precipitously in the second quarter. In the wake of COVID-19, both the number of new deals and the volume of the transactions dropped to 65% and 58%, respectively, of last year’s levels.
The European issuance level for the year to date saw a similar decline at €13.21 billion from 40 deals, versus €20.15 billion from 48 deals at the same point last year, Maples Group reported.